Smurfit WestRock plc (SW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 20.38% | 24.09% | 27.27% | 30.74% | 31.99% | 31.40% | 31.77% | 31.18% | 31.51% | 31.99% |
| Operating profit margin | 3.11% | 3.84% | 6.69% | 11.21% | 11.78% | 12.80% | 12.44% | 11.86% | 11.41% | 10.70% |
| Pretax margin | 1.48% | 2.40% | 5.55% | 9.54% | 9.16% | 10.48% | 10.18% | 9.61% | 9.76% | 8.89% |
| Net profit margin | 1.37% | 1.41% | 4.04% | 6.93% | 6.62% | 7.68% | 7.46% | 7.09% | 7.27% | 6.57% |
The profitability ratios of Smurfit WestRock plc have shown varying trends over the analyzed periods.
1. Gross Profit Margin: The gross profit margin has fluctuated between 20.38% in December 2024 and 31.99% in December 2023. A declining trend is observed from December 2023 onwards, indicating potential challenges in maintaining profitability at the gross profit level.
2. Operating Profit Margin: The operating profit margin has decreased consistently from 11.41% in June 2022 to 3.11% in December 2024. This decline suggests increasing operating costs relative to revenue, impacting the company's profitability from its core operations.
3. Pre-tax Margin: The pre-tax margin has experienced a similar downward trajectory, falling from 9.76% in June 2022 to 1.48% in December 2024. This trend highlights challenges in controlling expenses and optimizing profitability before tax considerations.
4. Net Profit Margin: The net profit margin has also shown a continuous decline, dropping from 7.27% in June 2022 to 1.37% in December 2024. This decreasing trend indicates that the company's bottom line profitability has been eroded over time, potentially raising concerns about its overall financial health and efficiency in generating net income.
In summary, the profitability ratios of Smurfit WestRock plc demonstrate a pattern of declining margins over the analyzed periods, signaling challenges in maintaining and growing profitability levels. It is essential for the company to assess its cost structures, revenue streams, and operational efficiencies to address the factors contributing to the deteriorating profitability ratios.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.69% | 1.85% | 4,528,316.00% | — | 19.67% | — | 26.12% | 24.15% | — | — |
| Return on assets (ROA) | 0.75% | 0.68% | 2,735,556.00% | — | 11.05% | — | 15.66% | 14.45% | — | — |
| Return on total capital | -1.47% | 1.32% | 3,345,623.08% | — | 42.84% | — | 60.62% | 60.00% | — | — |
| Return on equity (ROE) | 1.89% | 1.70% | 5,260,684.62% | — | 25.10% | — | 36.34% | 35.89% | — | — |
Based on the provided data for Smurfit WestRock plc, we can observe the following trends in the profitability ratios:
1. Operating return on assets (Operating ROA):
- The Operating ROA was not available for December 2021 and subsequent dates until June 2023.
- A significant improvement is seen from December 2022 to June 2023, with the ratio increasing from 24.15% to 26.12%.
- However, there is a notable decrease in the Operating ROA in the subsequent periods, especially between June 2024 and September 2024, where the ratio jumps to an exceptionally high level before declining drastically to 1.69% by December 2024.
2. Return on assets (ROA):
- Similar to the Operating ROA, the ROA was not provided for December 2021 and subsequent dates until June 2023.
- There is a general declining trend in the ROA over the available periods, with the ratio decreasing from 14.45% in December 2022 to 0.75% by December 2024.
- There are some anomalous figures in June 2024 and September 2024, with extremely high values not consistent with historical trends.
3. Return on total capital:
- The Return on Total Capital was also not available for December 2021 and subsequent dates until June 2023.
- There is high volatility in this ratio, as seen in the significant fluctuations between June 2024 and December 2024.
- The ratio turns negative in December 2024, which indicates that the company's total capital was not generating a positive return during that period.
4. Return on equity (ROE):
- Similar to the other ratios, the ROE data was not provided for December 2021 and subsequent dates until June 2023.
- There is a downward trend in ROE from December 2022 to December 2024, with the ratio dropping from 35.89% to 1.89%.
- The anomalies in June 2024 and September 2024 are also present in this ratio, with unusually high figures that are not aligned with the historical performance.
In conclusion, the profitability ratios of Smurfit WestRock plc show mixed performance over the available periods, with some anomalies in certain data points that may require further investigation to understand the reasons behind the fluctuations and exceptionally high or low values.